religare morning digest · 14/01/2019 · 3i infotech ltd. ashirwad steels & industries ltd....

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Religare Morning Digest

January 14, 2019

Nifty Outlook

VWAP (Expiry till date) Max OI (Call) Max OI (Put)

NIFTY 10800 11000 10500

Markets ended marginally lower amid volatility, tracking mixed cues. Firm global markets aided positive start but decline in select index majors, which were led by TCS after not so encouraging results, pushed the index lower. However, rebound in last hour of the trade trimmed losses and helped Nifty to sustain above 10,750.

Markets are awaiting fresh trigger for the next directional move and it could be the prevailing earnings season. Participants will react to the Infosys results in early trades on Monday i.e. January 14. Mostly counters are witnessing volatile swings on expected lines and thus require extra care in trade selection and position management. We suggest not going overboard and maintaining positions on both sides.

Sectors to watch

Sector Name Outlook

IT STABLE

BANKS STABLE

FMCG STABLE

News Religare Super Ideas**

FII & DII Cash Segment (Rs. in Cr.)

Category Amt. MTD FYTD

FII** -345 -1686 73784

DII** 11 1197 86158

Derivative Ideas **

Infosys Ltd. Q3FY19 Revenue grew by 20.3% QoQ to Rs 21,400 cr. USD revenue stood at USD 2,987 mn, up 2% QoQ, while growth in constant currency stood at 2.7%. EBIT stood at Rs 4,379 cr, while EBIT margins declined by 110 bps qoq to 22.6%. Further it maintained its EBIT growth guidance of 22-24% in FY19.

Karnataka Bank reported Q3FY19 net profit at Rs 140cr, up by 60% YoY and 25% QoQ. NII grew by 8.1% YoY to Rs 488cr. Pre-provisioning profit stood at Rs 400.4cr, up 12.4% YoY. GNPA decreased from 4.66% in Q2FY19 to 4.45% in Q3FY19 while NNPA remained unchanged at 3% qoq.

Reliance Industrial Infrastructure Ltd. reported net revenue of Rs 21.2 cr, up by 0.2% yoy in Q3FY19. Its EBITDA and PAT de-grew by 21.4% and 29.2% yoy.

**Provisional data as on 10th January,2019

Scrip Buy/Sell CMP Initiation

Range SL* Target

IGL BUY 270.75 268-270 263 282

CANBK BUY 280 PE 10.25 8-9 6 15

Instrument B/S Lot

INITIA-TION

RANGE

SL TARGET

ITC BUY CASH

MARKET 288-290 280 304

**Please note that the given technical and derivative recommendations are

"valid for taking position" only on recommended date and in the given range.

*Please note - Stoploss is on closing basis for delivery recommendation and

intraday basis for futures recommendation.

Trade Stats

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 241841 16689

IDXOPT 6682522 411078

STKFUTS 656304 38635



January 14, 2019

Investment Pick - Container Corporation of India Ltd.

Incorporated in 1988, Container Corporation of India (CONCOR) is a market leader in container rail segment, having the largest network of 81 ICD’s/CFS’s

Terminals (14 EXIM, 23 domestic container depots and 36 combined terminals and 8 strategic Tie-ups). The company provides one-stop solution for customers in

areas such as terminal management, movement of cargo and operations of warehouses.

Further, we estimate company’s Revenue/EBITDA/PAT to grow by 14%/15%/15% CAGR respectively over FY18-21E, on back of healthy sector growth, steady

capacity addition and increase in realizations & margins. We recommend a Buy on the stock with target price of Rs 788.

Scrip CMP Target Duration Recommendation Price

Container Corporation of India Ltd. 678.6 788 9-12 Months 682

ITC added around 4% in open interest as long buildup was seen in it in previous session. Current

chart pattern also indicates further surge in its price. We suggest buying ITC in cash market option

as per below levels .

Strategy:- BUY ITC between 288-290, stop loss 280,

Target 304.

Derivative Ideas Religare Super Ideas

Indraprastha Gas Limited (IGL) Canara Bank (CANBK)

IGL, after the recent surge, has retraced marginally of late and found support around the multiple moving averages on the daily chart. Today i.e. January 11, it

has formed a fresh buying and likely to extend the momentum. Traders are advised to initiate fresh longs position in the given range.

We're reiterating our short recommendation in CANBK with the updated levels as it was not initiated in previous session.



January 14, 2019

Religare Investment Calls

Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,649.3

LIC Housing Finance 09-Aug-17 681 748 9.8% 484.1

Force Motors 25-Jan-18 3,250 4,197 29.1% 1,614.6

Avanti Feeds 12-Feb-18 835 967 15.8% 378.4

S Chand & Company 08-Jun-18 365 562 54.0% 215.4

Sutlej Textiles 20-Aug-18 53 62 17.8% 42.9

The Byke Hospitality 20-Aug-18 105 135 28.5% 59.0

Zee Entertainment Enterprises Ltd. 12-Oct-18 471 599 27.2% 451.1

Ambuja Cements Ltd. 29-Oct-18 190 247 29.7% 212.9

Maruti Suzuki India Limited 29-Oct-18 6,717 8,677 29.2% 7,320.5

Crompton Greaves Consumer Ele. Ltd. 30-Oct-18 202 263 30.2% 228.4

Kajaria Ceramics Ltd. 31-Oct-18 386 482 24.8% 525.9

Colgate Palmolive India Ltd. 31-Oct-18 1,100 1,390 26.4% 1,319.5

Bharat Electronics Ltd. 01-Nov-18 93 117 25.8% 92.1

Wonderla Holidays 01-Nov-18 282 321 13.7% 267.3

Swaraj Engines Ltd 01-Nov-18 1,460 1,783 22.1% 1,496.8

Nilkamal Ltd. 02-Nov-18 1,604 1,981 23.5% 1,405.1

Navneet Education 06-Nov-18 111 165 48.7% 109.3

Supreme Industries Ltd. 12-Nov-18 1,002 1,284 28.1% 1,112.2

Minda Corporation 13-Nov-18 132 189 43.2% 150.1

Godrej Agrovet Ltd. 13-Nov-18 524 617 17.7% 498.2

Capacit’e Infraprojects Ltd. 13-Nov-18 219 313 42.9% 247.1

Godrej Consumer Products Ltd. 13-Nov-18 685 883 28.9% 779.0

Britannia Industries Ltd. 14-Nov-18 2,906 3,259 12.1% 3,096.9

Voltas Ltd. 14-Nov-18 549 697 27.0% 542.2



January 14, 2019

Religare Investment Calls

Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price

Castrol India Ltd 15-Nov-18 149 184 23.5% 152.0

APL Apollo Tubes 15-Nov-18 1,260 1,711 35.8% 1,122.0

Jamna Auto Industries 15-Nov-18 72 105 45.8% 61.8

Reliance Nippon Life 16-Nov-18 166 214 28.9% 153.8

Eicher Motors Ltd 20-Nov-18 24,897 30,529 22.6% 20,507.6

Prabhat Dairy Ltd. 20-Nov-18 100 127 27.0% 93.4

SML Isuzu 20-Nov-18 680 884 30.0% 641.7

Century Plyboards 20-Nov-18 166 224 34.8% 185.0

Ashok Leyland Ltd. 21-Nov-18 108 144 33.3% 94.3

Wim Plast Ltd. 21-Nov-18 740 922 24.6% 690.5

Srikalahasthi Pipes Ltd 21-Nov-18 204 251 23.2% 179.3

Apollo Tyres Limited 22-Nov-18 225 305 35.6% 226.0

Fiem Industries 22-Nov-18 588 807 37.2% 525.6

Asian Granito India Ltd. 26-Nov-18 186 234 26.0% 141.2

KEI Industries Ltd. 28-Nov-18 354 452 27.7% 356.0

Mold-Tek Packaging 29-Nov-18 275 311 13.1% 263.2

Emami Ltd. 30-Nov-18 436 496 13.7% 433.1

TeamLease Services Ltd. 11-Dec-18 2,800 3,244 15.9% 2,758.7

Whirlpool of India Ltd. 11-Dec-18 1,279 1,590 24.3% 1,481.7

Indraprastha Gas Ltd. 12-Dec-18 249 315 26.8% 270.8

Time Technoplast 12-Dec-18 102 128 25.6% 99.8

Akzo Nobel India 20-Dec-18 1,651 1,955 18.4% 1,725.5

Rallis India 20-Dec-18 177 216 22.1% 167.7

ITC Ltd. 21-Dec-18 284 337 18.7% 295.4

Container Corp. of Ind. Ltd. 01-Jan-19 682 788 15.5% 678.6



January 14, 2019

Results Calendar — January 2019

Sun Mon Tue Wed Thu Fri Sat

13 14

FUTURISTIC SOLUTIONS LTD.

Indiabulls Ven-tures Limited

ICICI Securities Ltd

JUMBO BAG LTD.

PRAKASH IN-DUSTRIES LTD.

SANGHI COR-PORATE SER-VICES LTD.

TATA MET-ALIKS LTD.

15

COMFORT FINCAP LTD.

COMFORT INTECH LTD.

Den Networks Ltd

HINDUSTAN MEDIA VEN-TURES LTD.

India Grid Trust

JAY BHARAT MARUTI LTD.

KEY CORP LTD.

Kore Foods Ltd

KPIT Technologies Lim-ited

MAJESTIC AUTO LTD.

MULTI COMMODITY EX-CHANGE OF INDIA LTD.

NETWORK18 MEDIA & INVESTMENTS LTD.

PRATIK PANELS LTD.

SIEL FINANCIAL SER-VICES LTD.

SPECIALITY RESTAU-RANTS LTD.

TINPLATE COMPANY OF INDIA LTD.

TRIDENT LTD.

TV18 BROADCAST LTD.

ZEE ENTERTAINMENT ENTERPRISES LTD.

16

5paisa Capital Ltd

AVI Polymers Ltd

DCB Bank Limited

HT MEDIA LTD.

Kayel Securities Ltd

Medico Intercontinen-tal Ltd

MINDTREE LTD.

MOTILAL OSWAL FI-NANCIAL SERVICES LTD.

Pankaj Polypack Ltd

PHILLIPS CARBON BLACK LTD.

White Organic Agro Ltd

17

Abhijit Trading Company Ltd

AU Small Finance Bank Ltd

ADITYA BIRLA MONEY LTD.

BURNPUR CEMENT LTD.

CHOWGULE STEAMSHIPS LTD.

Cyient Limited

FEDERAL BANK LTD.

FIBERWEB (INDIA) LTD.

Geojit Financial Services Ltd

HINDUSTAN UNILEVER LTD.

INDO THAI SECURITIES LTD.

Jiya Eco-Products Ltd

L&T Technology Services Ltd

Mangalam Organics Limited

MASTEK LTD.

NALIN LEASE FINANCE LTD.

RALLIS INDIA LTD.

RELIANCE INDUSTRIES LTD.

18

3I INFOTECH LTD.

ASHIRWAD STEELS & INDUSTRIES LTD.

ATUL LTD.

Datiware Maritime Infra Ltd

Dhanlaxmi Bank Limited

DUKE OFFSHORE LTD.

ICICI Lombard General Insurance Company Ltd

KAJARIA CERAMICS LTD.

Larsen & Toubro Infotech Ltd

MENON PISTONS LTD.

MPS LTD.

MT EDUCARE LTD.

MUDIT FINLEASE LTD.

MUTHOOT CAPITAL SERVICES LTD.

NIIT TECHNOLOGIES LTD.

SBI Life Insurance Company Ltd

Sunshine Capital Ltd

Shri Niwas Leasing And Finance Ltd

SI CAPITAL & FINANCIAL SERVICES LTD.

TGV Sraac Ltd

Ugro Capital Ltd

WIPRO LTD.

ZEE LEARN LTD.

19

ARO GRANITE INDUS-TRIES LTD.

HDFC Bank Ltd

SIYARAM SILK MILLS LTD.



January 14, 2019

Corporate Action Calendar — January 2019 (Acquisition)

Date Target Company Acquirer Company

01/18/2019

01/18/2019

Shree Digvijay Cement Co Ltd

Apollo Tricoat Tubes Ltd

True North Managers LLP

Shri Lakshmi Metal Udyog Ltd

Economic Calendar — January 2019

Sun Mon Tue Wed Thu Fri Sat 13 14

Wholesale Prices YoY

CPI YoY

15

Trade Balance

Exports YoY

Imports YoY

16

17

18

19

Corporate Action Calendar — January 2019 (Cash Dividend)


13 14

Vishal Bearings Ltd

15

16

17

Tata Consultancy Ser-vices Ltd

18

Bajaj Corp Ltd

Delta Corp Ltd

19

Corporate Action Calendar — January 2019 (Stock Buyback)


13 14

Triveni Turbine Ltd

15

16

17

18

19

Corporate Action Calendar — January 2019 (Stock Split)


13 14

15

Gujarat Gas Ltd

16

17

18

19



January 14, 2019

Current Portfolio and Performance Summary as on 11th January’19

Stock Sector Entry Date Weight Reco price (`) CMP (`)

Va Tech Wabag Infrastructure August 16, 2017 5.0% 636 313

Godfrey Phillips India Consumer Goods January 5, 2018 9.7% 1,022 908

CCL Products Beverages January 9, 2018 9.7% 306 269

Security and Intelligence Services (India) Consumer Services July 9, 2018 6.4% 1,163 757

HDFC Financial Services August 14, 2018 10.2% 1,949 1,991

Asian Paints Consumer Goods August 24, 2018 10.5% 1,390 1,404

Maruti Suzuki India Auto August 28, 2018 7.7% 9,393 7,321

HDFC Bank Financial Services August 30, 2018 10.7% 2,073 2,112

Mahanagar Gas Gas Distribution August 31, 2018 10.8% 869 893

Reliance Industries Energy December 20, 2018 9.8% 1,123 1,098

Cash 9.4%

Total 100%



January 14, 2019

Historical Performance as on 11th January’19

Performance Matrix 3-Month 6-Month 1-Year Since Inception

Religare Alpha 9.1% 1.2% -10.8% 33.0%

Nifty 5.5% -2.0% 1.3% 36.9%

Outperformance 3.6% 3.3% -12.1% -3.9%

850

950

1,050

1,150

1,250

1,350

1,450

1,550

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-15

Dec-

15

Feb-

16

Apr-

16

Jun-

16

Aug-

16

Oct

-16

Dec-

16

Feb-

17

Apr-

17

Jun-

17

Aug-

17

Oct

-17

Dec-

17

Feb-

18

Apr-

18

Jun-

18

Aug-

18

Oct

-18

Dec-

18

Performance Comparison

Religare Alpha Nifty



January 14, 2019

Research Product Basket

For cash market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Intraday Calls Intraday 2 - 3 < 1 day 25%

Live / RMD Calls Daily 3 - 4 3 - 4 days 30%

Master Pick Weekly 1 1 month 15%

Religare Alpha Opportunity NA 2 - 3 months 20%

Cash NA 10%

For 1L margin*

Total Per Call

25,000 8,000

30,000 4,000

15,000 5,000

20,000 As per weightage

10,000

Intraday Calls These calls are flashed live on Ms Lync and ODIN with the purpose of squaring off positions on the same day. As a policy, we restrict our

intraday cash market calls to less than 4 calls a day. Hence, funds should be allocated accordingly to have provision to trade in all calls.

Live / RMD Calls 2 super ideas are flashed in RMD daily with a view of 3-4 days. Additionally as per market opportunity, we flash live calls during the day (including BTST calls). 3-4 such calls are made on a daily basis which might be open for 3-4 days. Funds should be allocated keeping in mind that

there will be 7-8 such open calls daily.

Master Pick This is our weekly recommendation shortlisted on the basis of techno-funda analysis. 15% of funds is recommended to be allocated for Master Pick considering that there will be 3 open calls. The average open duration for this call will be 1 month.

Religare Alpha This is a portfolio of 8-10 stocks which are held with a view of 2-3 months. It is recommended to allocate 20% of funds for building this portfolio which will provide stability to the overall trading portfolio.

Cash 10% surplus cash in the portfolio should be kept for the purposes of allocating it to opportunities as and when they arrive.

For derivative market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Derivative Ideas Daily 1 - 2 1 - 3 days 40%

Live calls Intraday / Daily 1 - 2 3 - 4 days 50%

Cash NA 10%

For 1L margin*

Total Per Call

40,000 40,000

50,000 50,000

10,000

Derivative Ideas 1 derivative idea is shared in RMD daily. It can be a plain vanilla F&O buy/sell call or an option strategy. Funds should be allocated assuming 2

such calls will be open at any time. These calls are open for 3-4 days on an average.

Live Calls These calls are flashed on MS Lync and ODIN during live market hours. These calls can be intraday or with a view of 2-3 days. Funds should be

allocated considering 2 such calls will be open at any time. 3/4 times, these calls will be on Nifty / Bank Nifty only.

Cash It is recommended to hold 10% cash to capitalize on any opportunity that may arise in markets.

For every client, the advisor must allocate a specific proportion of funds for trading and investing depending on the risk taking ability and willingness of the client

and their investment goals.

The below mentioned product basket tries to address the way to deal with the trading portfolio (cash/derivative) for optimum effectiveness of research calls.

It is recommended to divide your trading funds for various types of calls and not invest the entire amount for 1 or 2 calls only.



January 14, 2019

Hitesh Agrawal (HoD) [email protected]

Ajit Mishra [email protected]

Himanshu Sharma [email protected]

Khadija Mantri [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Nirvi Ashar [email protected]

Rohit Khatri [email protected]

Suhanee Shome [email protected]

Research Analysts



January 14, 2019

Before you use this research report , please ensure to go through the disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 and Research Disclaimer at the following link : http://www.religareonline.com/disclaimer

Specific analyst(s) specific disclosure(s) inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 is/are as under:

Statements on ownership and material conflicts of interest , compensation– Research Analyst (RA)

[Please note that only in case of multiple RAs, if in the event answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) below , are given separately]

Nature of Interest ( if answer to F (a) above is Yes : ……………………………………………………………………………………………………………………

Name(s) with Signature(s) of RA(s).

[Please note that only in case of multiple RAs and if the answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) above , are given below]

Copyright in this document vests exclusively with RBL. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose, without prior written permission from RBL. We do not guarantee the integrity of any emails or attached files and are not responsible for any changes made to them by any other person.

S. No. Statement Answer

Yes No

I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table] No

I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance?

No

I/we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance?

No

I/we have received any compensation from the subject company in the past twelve months? No

I/we have managed or co-managed public offering of securities for the subject company in the past twelve months? No

I/we have received any compensation for brokerage services from the subject company in the past twelve months? No

I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months? No

I/we have received any compensation or other benefits from the subject company or third party in connection with the research report? No

I/we have served as an officer, director or employee of the subject company? No

I/we have been engaged in market making activity for the subject company? No

SS..No. Name(s) of RA.

Signtures of RA

Serial Question of question which the signing RA needs to make a separate declaration / answer

Yes No.

religare morning digest · 14/01/2019 · 3i infotech ltd. ashirwad steels & industries ltd....

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